House panel to hold Blue Cross overhaul hearing Wednesday

LANSING, Mich. (AP) -- A House panel plans to revisit a proposal to end Blue Cross Blue Shield of Michigan's tax-exempt status and transform it from a charitable trust to customer-owned nonprofit.

House Insurance Committee Chairman Pete Lund says the twice-postponed hearing scheduled for Wednesday comes after lawmakers have ironed out most concerns with the legislation. The Republican from Shelby Township declined to specify which parts of the bills caused problems but he believes the reworked bill will "be fair to everyone in Michigan."

The legislation passed the Republican-controlled Senate in October.

Supporters say it modernizes the insurer and allows it to be taxed and regulated as its competitors. Critics counter it short-shrifts the elderly and reduces oversight of a company controlling 70 percent of the market.